COUNCIL tenants are set to receive a cash boost from a lower-than-expected rent increase which will save them about £100 over the next year.

Basildon Council has already increased charges by 5.8 per cent, but following a Government U-turn on the hikes due to the recession, the council now plans to follow suit, by slashing the increase to 2.9 per cent.

It means tenants who currently pay an average of £71.38 a week, will see their rent go up by about £2 a week, rather than the extra £4 they already pay. This will save them about £104 over 12 months.

The news emerged during a St George’s Community Housing association tenants and leaseholders’ meeting. The proposal will be discussed at Thursday’s full council meeting.

If approved, the new rate will come into effect from August 3.

Tenants will also receive a one-off, back-dated payment, going back to April 1.

Council house tenants welcomed the move, which is intended to help lift the burden on families struggling in the credit crunch.

Kelly Hogan, 38, an unemployed mum-of-two of Bourne Avenue, Laindon, said: “It will mean I can buy a little bit more at Asda or put a bit towards petrol.

“Like they say, every little helps.”